Sustainable Investing
Where Making Money - Meets Making a Difference
Would you be interested in aligning your values with your investment portfolio if you did not have to sacrifice your investment performance objectives?
Have you ever looked at the companies you own in your investment portfolio and not liked the names of those companies, and wish you could do something different?
With our High Impact Portfolios you can aim to align your investments with your social and environmental values. Our High Impact Portfolios are comprised of stocks, bonds, mutual funds and ETF's that can serve as a cornerstone of a well balanced portfolio. Our High Impact Portfolios have a dual objective of providing competitive returns while making a positive impact on society and the environment. What is High Impact Investing?
High impact investing is a strategy that strives to align your personal values with your investments while making a positive social and environmental impact. This can also be done for investment funds of Non-Profit organizations and Foundations to match and support their missions.
Sustainable or Socially Responsible Investing incorporates ESG analysis. ESG stands for Environmental, Social and Governance.
Environmental
- Carbon emissions
- Energy efficiency
- Water scarcity
- Waste management
- Pollution mitigation
Social
- Diversity & workplace policies
- Labor standard
- Supply chain management
- Product safety
- Community impact
Governance
- Board diversity
- Executive compensation
- Political contributions
- Bribery & corruption
- Accounting & reporting
Why High Impact Investing
Preference and performance. There is a growing base of evidence that suggests companies that are environmentally sustainable, and have positive screens for corporate governance and diversity in executive leadership outperform funds that do not share this focus.1
At The Wealth Consulting Group, we are hearing from our clients that they prefer to invest in companies that are making a positive difference in the world. We believe our High Impact Investment portfolios support all these objectives. We help clients set and implement clear goals aligned with their needs, values, and objectives. We strive to be a leader in sustainable and responsible investing.
High Impact ESG Performance
"High sustainability companies significantly outperform their counterparts over the long-term, both in terms of stock market and accounting performance."1
1 "The impact of a Corporate Culture of Sustain-ability on Corporate Behavior and Performance." Harvard Business School, R. Eccles, I. Ioannou, G. Serfeim, 25 November, 2011/2012
The charts below show ESG indices performance versus the performance of its comparable traditional indices.
Investing involves risk, including the loss of principal. See index definitions on the back page.
1 Source: Morningstar Direct. U.S. domiciled Mutual Fund & ETF assets, excluding Funds of Funds. Data as of 6/30/21.
2 Sustainable Signals: Individual Investor Interest Driven by Impact, Conviction and Choice, Morgan Stanley Institute for Sustainable Investing, 2019.
The MSCI KLD 400 Social Index has outperformed the S&P 500 Index by 0.53% annualized from 5/01/90 to 6/30/21. The MSCI EAFE ESG Leaders Index has outperformed the MSCI EAFE Index by 0.57% annualized from 10/1/07 to 6/30/21. The MSCI Emerging Markets ESG Leaders Index has outperformed the MSCI Emerging Markets Index by 2.45% annualized from 6/6/13 to 6/30/21. Comparable returns since index inception are shown gross, which includes dividend reinvestment without a reduction from tax.
As of 6/30/21, the returns for the MSCI KLD 400 Social Index were: 1 year: 42.22%, 3 year: 19.97%, 5 year: 18.56%, 10 year: 15.13% and Since Inception (5/1/90): 11.37% annualized. The returns for the S&P 500 Index were: 1 year: 40.79%, 3 year: 18.64%, 5 year: 17.64%, 10 year: 14.83% and Since MSCI KLD 400 Social Index Inception (5/1/90): 10.85% annualized. The returns for the MSCI EAFE ESG Leaders Index were: 1 year: 30.67%, 3 year: 10.02%, 5 year: 10.89%, 10 year: 7.14% and Since Inception (10/1/07): 7.02% annualized. The returns for the MSCI EAFE Index were: 1 year: 32.92%, 3 year: 8.77%, 5 year: 10.79%, 10 year: 6.38% and Since MSCI EAFE ESG Leaders Inception (10/1/07): 6.29% annualized. The returns for the MSCI Emerging Markets ESG Leaders Index were: 1 year: 42.00%, 3 year: 13.64%, 5 year: 14.66%, and Since Inception (6/6/13): 9.52% annualized. The returns for the MSCI Emerging Markets Index were: 1 year: 41.36%, 3 year: 11.65%, 5 year: 13.42% and Since MSCI Emerging Markets ESG Leaders Inception (6/6/13): 7.07% annualized.
Past performance is no guarantee of future results. Index performance is not necessarily representative of fund performance.
